Problem

Prepare a statement of cash flows—indirect method The financial statements of Pouchie Co....

Prepare a statement of cash flows—indirect method The financial statements of Pouchie Co. included the following information for the year ended December 31, 2010 (amounts in millions):

Depreciation and amortization expense

 $ 520

Cash dividends declared and paid

  660

Purchase of equipment

  1,640

Net income

  768

Beginning cash balance

  240

Proceeds of common stock issued

  296

Proceeds from sale of building (at book value)

  424

Accounts receivable increase

  32

Ending cash balance

  80

Inventory decrease

  76

Accounts payable increase

  88

Required:

Complete the following statement of cash flows, using the indirect method:

POUCHIE CO.

Statement of Cash Flows

For the Year Ended December 31, 2010

Cash Flows from Operating Activities:

Net income

Add (deduct) items not affecting cash:

$ 768

Net cash provided (used) by operating activities

Cash Flows from Investing Activities:

Net cash provided (used) by investing activities

Cash Flows from Financing Activities:

Net cash provided (used) by financing activities

Net increase (decrease) in cash for the year

Cash balance, January 1, 2010

Cash balance, December 31, 2010

$  

240

$ 80

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